Key Economic Indicators

To understand how well an economy is doing, economists use several major indicators, including:

• Gross Domestic Product (GDP)
• Unemployment Rate
• Inflation Rate

Gross Domestic Product (GDP)

GDP measures the total value of all goods and services produced within a country in a given period. It's a key indicator of economic health.

Unemployment

The unemployment rate shows the percentage of people in the labor force who are actively looking for work but can't find it. High unemployment often signals economic trouble.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising. Moderate inflation is normal, but high inflation reduces purchasing power.

Why These Measures Matter

These indicators help policymakers make informed decisions and allow citizens to understand the health of their economy.